A helping hand from numbers leads to objective opinions and confident decisions!!!

Annualized returns as on 30 Sep 2025 Asset Class 1 (Gold): -           One year: 52%. Outstanding performance by Gold -           10 year: 16.12% Asset Class 2 (Equities, basis Nifty 500 TRI ): -           One year: Negative 4.94%. Abysmal performance by equities in past 1 year, more so when compared to gold returns -           10 year: 14.35%. Now it does not look that bad even if you bring gold in perspective However, it is quite clear gold trumped equites both in long and short horizons. Good many people will be inclined to go for gold investments going forward, now that data proves gold trumps equities even in long horizon But hang on. What was the situation on 30 Sep 2024, and for good measure on 30 Sep 2023. Here we go… Annualized returns as on 30 Sep 2024 Asset Class 1 (Gold): - ...

Momentum investing: Deploy money in the “trend”, hope the “trend” to keep up, and keep reaping the rewards!!! Current example – precious metals like gold and silver have delivered super returns in past one year. Those BUYING GOLD & SILVER now are following a momentum strategy. They expect the good times for gold and silver to continue!!! Contrarian Investing: You are expecting the trend to reverse. Say I have good amount of investment in gold. I feel the price has run it’s course and now buying into gold or even not selling some is a high risk as prices may pull back (trend reversal). On the contrary, equity markets have not done well in recent past. Nifty 500 index return for 1 year ending 30 Sep 2025 is NEGATIVE 5.28%. If I decide to SELL GOLD and BUY NIFTY 500 INDEX, I am being a contrarian. Both have pros and cons. Personally, I prefer contrarian play. Cons of Momentum play: the (up)trend may stop once you put money on the line. Worse, it may reverse and you will now star...

Whether value of your primary home or the car you drive be counted in your asset inventory  ? Or in Indian context, the value of jewellery you possess? For a long time, I was on the other side of the fence – any consumption stuff should not be considered in asset inventory working. Now, my views have changed – the stuff which give you and your family “status” and let the world know that you have “arrived” are definitely worthy of being counted in your net worth. Ok, don’t roger me for being so subjective despite of running a blog obsessed with numbers. But even in numbers context, anything which can be liquidated for money maybe be considered in “Asset Inventory”, or more simply wealth status. I say “can” and not “should” because for consumption stuff, which serves only a particular need, it is upto an individual of what he / she plans to do with the money realised after liquidating the stuff. For example, when I scrapped my 15 plus year old motorcycle and got nearly 10% of pur...

Should an 80 year old   or near about person who has come about in possession of large chunk of money through some source, let’s say property sale consider deploying a large chunk of money in listed equity investments? General opinion: No, absolutely no. Too risky at this advanced age!!! Even if one is really inclined to invest in equities, should be in lowly amounts. Somewhere I read – equity allocation should follow 100 minus current age rule. If you are 80, equity allocation basis overall assets should be 20%. Never mind doing up asset inventory and asset allocation check on overall capital basis is rarely focused on. Well, I don’t subscribe to this “general opinion”. In personal finance, “personal” comes before “finance” and any generic statement does not take into account investor specific financial situation. What if an 80 year old: -           Has assured income which is at least 1.25 times his / her regular expenses? To...

You don’t know how well your money is doing until you have a clear picture where all your money is. That is where the role of periodically working out asset inventory comes into play. While it may appear to be a chore initially (and it is), if one perseveres, the results may be the best guide a very successful financial situation. The best part – you don’t need any fancy apps or other tools to go about it. Simple excel sheet or even a diary if you prefer writing can do the job near perfectly. I am deliberately not putting up any sample asset inventory format. That is left to each individual. The format you go by can be a simple one, with just the asset type & associated number against it. Or an advanced one where you also plug in realistic expected return. Maybe even a super advanced one (if I can say that), where you adjust the weighted average portfolio returns with expected inflation to get an idea how well your investments are keeping up with purchasing power capacity. Wh...

With the tax incentives for savings gone if one opts for new tax regime, going for NPS (National Pension Scheme) investments on voluntary basis to the tune of INR 50,000/- per annum or even higher will be out of consideration for many. Or should it be? While the tax savings during accumulation phase are gone for those who go for new tax regime, key attraction of tax benefits on withdrawal still remain. It has been sometime now that equity investments have become taxable beyond certain minimum threshold of capital gains. However, NPS still offers the opportunity of deploying sizable annual contribution in equity investments and get large part of accumulated corpus (60%) tax free after 60 years of age. This, plus the option of continuing NPS contribution till 75 years of age is what made me subscribe to NPS scheme. The flexibility offered by extending NPS subscription till advanced age of 75 while still having a chance to exit whenever you want to is excellent.   Coming to annuit...